| 1 |
The letter of credit which can be endorsed to another person is called: |
- A. Special L.C
- B. Transferable L.C
- C. Resolving L.C
- D. None of the above
|
| 2 |
What does IOU mean |
- A. I am a debtor to you
- B. I am a creditor to you
- C. Both a and b
- D. None of these
|
| 3 |
The first stage or step between importer and exporter for the purpose of sale and purchase is: |
- A. Oath or undertaking
- B. Agreement
- C. Contract with bank
- D. Issuing of L.C
|
| 4 |
What is the nature of credit instrument IOU |
- A. An autograph
- B. A monograph
- C. A holograph
- D. A sonograph
|
| 5 |
Which letter of credit is issued for a single or particular transaction: |
- A. Fixed
- B. Revocable
- C. Red clause
- D. Green Clause
|
| 6 |
Which of the following is a non-commercial letter of credit |
- A. Irrevocable letter of credit
- B. Red-clause letter of credit
- C. Special letter of credit
- D. Traveller's letter of credit
|
| 7 |
Which of the following is useful in facilitating trade relation between the businessmen of different countries |
- A. Bank draft
- B. Money order
- C. Letter of credit
- D. Stock certificate
|
| 8 |
What does the bank receive on issuing a letter of credit: |
- A. Profit
- B. Interest
- C. Commission
- D. Duty
|
| 9 |
Which of the following parties of a letter of credit is called beneficiary |
- A. Importer
- B. Exporter
- C. Opening bank
- D. Advising bank
|
| 10 |
IOU is a document |
- A. Negotiable
- B. Non-negotiable
- C. Conditional negotiable
- D. Unconditional negotiable
|
